5048. Commercial Savings Bank (Moline, IL)

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: September 23, 1931
Location: Moline, Illinois (41.507, -90.515)

Metadata

Model: gpt-5-mini
Short Digest: 7ce22d74

Response Measures

None

Description

The Commercial Savings Bank of Moline closed on Sept. 23, 1931 and a receiver (Charles J. Smith) was appointed in October 1931. Coverage documents receivership, criminal prosecutions of officers for embezzlement/withholding, asset audits and dividend distributions during liquidation. No contemporaneous bank run is described in the articles; the closure appears driven by discovered irregularities and embezzlement (bank-specific adverse information).

Events (4)

1. September 23, 1931 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed after discovery of irregularities, shortages and alleged embezzlement by officers (charges against cashier and assistant cashiers; suicide of assistant cashier Walter Hanson shortly after closing).
Newspaper Excerpt: The Commercial bank closed Sept. 23, 1931.
Source: newspapers

2. October 17, 1931 Receivership

Newspaper Excerpt: Mr. Smith was appointed receiver on Oct. 17, 1931. C. J. Smith, receiver for the Commercial Savings bank of Moline, today issued a call to all depositors ... to turn in their pass books.
Source: newspapers

3. August 16, 1932 Other

Newspaper Excerpt: The first dividend of 10 per cent was paid Aug. 16, 1932 and the second of ... was paid on Dec. 20, 1932. The Commercial bank closed Sept. 23, 1931. The receiver has collected ... since the institution closed and has made distributions to depositors during liquidation.
Source: newspapers

4. July 16, 1934 Other

Newspaper Excerpt: Decree orders judgment for receiver ... judgments against 69 former stockholders in Commercial Savings involve total ... No distribution been made to creditor depositors, because objections made during the pendency ... receiver proposed to make petition authorizing distribution.
Source: newspapers

Newspaper Articles (19)

1. October 30, 1931 The Dispatch Moline, IL

Article from The Dispatch, October 30, 1931

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ASK PASS BOOKS AT CLOSED BANK Receiver for Commercial Issues Statement; Directors Pledge Cooperation. C. J. Smith, receiver for the Commercial Savings bank of Moline, today issued a call to all depositors, both commercial and savings, to turn in their pass books. The pass books will be received at the bank, beginning Monday morning. The bank will be open for this purpose from 9 to 5 daily. Depositors will be given receipts for their books. Calling in pass books is a procedure followed in all cases when a receiver has been appointed for a bank, it is announced, and its purpose is to assist the auditor in determining the assets and liabilities of the bank. A staff of three employes is assisting Mr. Smith at the bank. The staff consists of Everett Carlson, head clerk; Julius Schmidt, bookkeeper, and Catherine Kelly, stenographer. Carlson and Schmidt worked at the Commercial bank before it was closed. Miss Kelly comes from Jerseyville and has had considerable experience working in banks and with receivers of banks. Mr. Smith stated that directors of the bank have assured him of their cooperation in reaching an early settlement of the bank's affairs. He also urged depositors to be careful about signing any papers in connection with their business at the bank. The receiver said he would issue statements from time to time to keep the depositors informed as to the progress being made in setthing the bank's affairs.

2. March 16, 1932 The Dispatch Moline, IL

Article from The Dispatch, March 16, 1932

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Commercial Bank Depositors Urged To Present Claims Charles J. Smith, receiver for the closed Commercial Savings bank of Moline, today issued a statement in which he urged all depositors who have not filed claims to do so at once. The receiver said the audit of pass books has been completed. He stated that complete figures on the audit, which covered a period of seven or eight years, are not available at present. Judge N. A. Larson of the circuit court today authorized Mr. Smith to sell odd lots of bonds valued at $3000 and listed as assets of the bank. The receiver informed the judge that a disbursement can be made to depositors and other creditors in May.

3. May 17, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, May 17, 1932

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Bank Receiver Given Judgment on Claims Two judgments in favor of Charles J. Smith, receiver for the Commercial Savings bank of Moline, were entered in the Rock Island county circuit court yesterday afternoon by Judge Nels A. Larson. One against Richard B. Walsh, for 05, was on a note dated Feb. 5. 1931, and interest and collection costs. A judgment against Reynold M. Johnson. former cashier of the bank, for $4,869.37 covers three notes. one of Dec. 27. 1930. for $1,825. one July 25. 1931, for $815. and one of Aug. 9, 1931, for $1,500, and interest and collection costs. The judgments were on confessions in the notes.

4. June 2, 1932 The Dispatch Moline, IL

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President Testifies Bank Johnson Trial In Reynold Cashier and School Former Treasurer Charged with Withholding Money. annual reports of ReyWhether nold M. Johnson treasurer school township were actually merely bore his signed by him or became issue name session his trial this morning's of withholding school charge funds. of During president of the Charles Larson, Commercial Savings bank of Moline and school trustee, out that of series of annual reports bore no at all while the witness said that there appears to be some in signatures on various other annual reports. direct the witOn ness had said he familiar with the handwriting and signature Mr. Johnson and that to the best of his judgment the name of Reynold M. Johnson on the annual was the signature of Johnson. ports Attempt the defense to have the witness testify about the handwriting in the body of the reports failed when Ben state's attorney, objected and the objections were sustained by Judge Nels Larson. The reports have not been submitted exhibits by the state but have merely been marked as exhibits for the purposes of identification. On direct examination, Mr. Bell and his assistant, Dan H. McNeal, confined questions put the witness to the signature on each report. also brought out on crossexamination that during semi-annual audits of the treasurer's ports, Mr. Johnson would leave room to take care of other busiand that during absence the audit by the trustees the noon session closed the was withdrawn temporarily by the state. Mr Larson, who gave his occupation as farming on direct examination, explained on tion that he has not been actively engaged in farming for the last years. He said he has been president the bank for the last years and director of the bank since 1913 1914. He said various offices public trust which he has held clude clerk, highway commissioner and assistant assessor. Tells of Audits. In response to question put Andrew Olson of defense counsel, Mr. Larson said he assumed that Walter Hanson, an assistant cashier of the bank, killed himself shortly after the bank closed, was called into meetings of the school trustees at the time of audits of treasurer's Stansbury of Chicago, also member of defense counsel, moved that all of Mr. Larson stricken from the record when the witness that the annual reports under state exhibits numbered from twelve to were actually reports the county superintendent of schools and not to the school trustees but Judge Larson denied the motion because of the fact that pertained to identification of the signature of R. M. Johnson. Eli Meersman, successor to Johnson treasurer of the school trict, was slated to be the first witness this afternoon's session, called for 1:30. During the court sessions Johnwho is charged with having withheld $23,000 in school funds, confers frequently with the members of the defense counsel regard testimony. In addition to Mr. Olson and Mr. Stansbury, Johnson represented Fred Railsback of Moline. Trevor Following the opening statement the prosecution at the start of afternoon's session, Clarence S. Trevor of Moline, trustee of the school township, was called to the stand. He gave his address as 2408 Sixteenth street, Moline. and said in describing the school that includes the schools known as Valley, Maple and Sand Mound. He has been trustee sixteen years, he stated. When he first was elected trustee the treasurer of the district was Anderson of Moline but for approximately the last fourteen years Johnson has been the treasurer, Mr. Trevor Then began long and dull session identifying records of school funds for the purpose of possible troduction to evidence The state presented for identification group of eight exhibits, including the minutes of the board of trustees, the bond of Eli Johnson, several Johnson's bonds and bank records. No Defense Statement. Taking of evidence began early in the the defense elected to make no opening statement the jury upon the completion of the state's statement. The defense did move, however, that witnesses be excluded from the courtroom during periods other were testifying. Judge Larson granted the motion with the qualifying condition that the state be permitted to have one or more persons in the roles of prosecuting witnesses at the state's table for conferences, advice and other help. Upon the defense's tion that witnesses be Mr. asked for list the defense's witnesses but did not press his request. In his opening statement. Mr. McNeal declared total shortage school funds of the school townwill $23,245.26. He said the state will show records kept by Johnson and kept by the Commercial Savings bank In closing, Mr. McNeal declared that any reasons Johnson may offer not having the money at the time in which the law places burden upon the treasurer.

5. June 13, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, June 13, 1932

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FOUND JOHNSON CHECKS BOX ON HANSON Receiver Testifies Cashier Now Trial Admitted Handwriting on Machine Tape. Contents of safety boxes of Walassistant cashier closed Commercial Savings banks of Moline. who committed suicide after the bank closed, were the subject of again day in the trial of Reynold Johnson, cashier of the bank, in the Rock Island county circuit court. Johnson on trial on charge of withholding school funds treasurer of the school township. Charles Smith, receiver for the bank, testified that one of the safety boxes contained bundle of checks, debit slips and an adding machine tape, all clipped together. The checks were signed by Johnson, and the receiver testified the signature was in writing. There were of the checks. The checks, clips and adding machine tape, went into the case state exhibit over objections of the defense. Dan H. McNeal, assistant state's attorney, who, with State's Attorney Ben S. Bell, is prosecuting the case, asked the witness about Johnson's statement in reference to the words "deposits" and "checks" on the adding machine tape. recall Mr. Smith testified. "Johnson said, admit that's my handwriting and can't deny In the other two deposit boxes Hanson, the witness said, were numerous deposit slips, checks, coupons, debit slips and other papers. Three lists of the items found were shown the witness, but withdrawn when he testified he prepared them since Friday from original lists. He was requested produce the original lists. Miss Lucille Smith, 2125 Fifteenth street Moline, employed by the bank receiver and formerly from June 1923 till the bank closed, employed by the bank. was witness for the state today. She testified concerning two drafts sent to Lampson Bros. Co., Chicago, stating they were sent by her on Johnson's orders. The drafts were for either stock or bond purchases, for and the other for $35,625. Miss Smith is being subjected to by the defense this afternoon.

6. June 14, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, June 14, 1932

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JOHNSON TRIAL Prosecution Concludes Its Case Chief; Defense will File mal Motions. Presentation of the state's case chief against Reynold Johnformer cashier the CommerSavings bank of Moline, charge funds hands school treasurer, this noon nearly concluded. and State's Attorney Ben Bell announced that state would afternoon. since David Stansburg Chicago, Andrew Olson and Railsback of Moline, defending Johnson. present motion Judge Nels Larson direct defense. the denied the fense expects to conclude its dence by Saturday indicated that witnesses, that the testimony will brief. Charles Smith. receiver for bank. directed before produce afterall slips and other found bank after bank their and indicated not properly credited the bank Smith that the handling the affairs seriously crippled records retained in court. offered the documents would remain in custody Miss Mary Larson, reprter, during trial. Mr. Smith centered about conwith Johnson concernwriting on adding chine tape. The adding machine was deposit box Hanson, assistant cashier, killed himself after the closing the bank. The that Harper, attorney. Johnson think this looks Reynold, and should explained." that Johnson replied has been long what asked Johnson not say checks long He testified that could the defendant might have made such statement. Arthur Johnson. auditor ployed by the testified concerning records the bank particularly loss securities. The reduced by charging items against profits other bond accounts. Yesterday Foster. vice president cashier Peoples Trust company of Moline, testified loan count in name Raymond by Johnson be his obligation. The loan renewed with two notes, for and the other for the ference that amount and state sought nect this transaction with the draft Bros. Chicago brokers, in August, 1929. Ray Hasson, deputy sheriff. testified the formal of successor school treasurer, for the due. Mrs. Moline, employed by the bank lists of items found Hanson's safety deposit boxes the bank. has than hibits and some them are groups records.

7. June 16, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, June 16, 1932

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RECEIVER SUES Brings Foreclosure Action Under Reynold Johnson Fair Aeres. the trial of Reynold son, former cashier of the Commercial Savings bank Moline, reachits closing stages in the Rock Island county circuit court yesterday afternoon, the receiver for the bank, Charles Smith, filed closure suit to collect loan the bank to Johnson which has been mentioned numerous times in the course of the criminal The receiver for the bank asks, in his bill filed by Attorney Harper, for receivership for property, Fair Acres, the Coaltown road south Moline, during 15 months redemption, foreclosing proceed. Johnson. according to the foreclosure bill, however deeded the property May to Fred H. Railsthe attorneys representing him the defense criminal trial. The bill recites that Andrew Olson, also appearing Attorney Railsback David Stansbury of Chicago in Johnson's defense. claims some interin premises, and that president the Commercial also has or claims an "the nature known the During the trial Attorney Railsback quent taxes on premises, and insurance premium, to prothe receivership interest the

8. June 17, 1932 The Dispatch Moline, IL

Article from The Dispatch, June 17, 1932

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JOHNSON TRIAL TO REACH JURY THIS AFTERNOON Bell Gives Closing Argument Asking Conviction of Ex-Treasurer. DEFENSE BLAMES ANOTHER Lawyer Refers to Employe in Whom Former Banker Placed Trust. Reynold M. Johnson's trial will go to the jury late this afternoon, was indicated this noon when Ben S. Bell, Rock Island county state's attorney, interrupted his closing argument to the jury for the recess. Johnson, former cashier of the closed Commercial Savings bank of Moline, was prosecuted on a charge of having withheld approximately $23,000 as treasurer of the school township including districts in South Moline and outlying governmental townships from his successor. Eli D. Meersman. Four other indictments, charging making of false statements and embezzlement, also were returned by the grand jury. David Stansbury of Chicago, who, with Andrew Olson and Fred Railsback of Moline. has represented the defense throughout the case, concluded his final plea to the jury this morning with the statement: "That on this evidence the state is asking you to take Reynold Johnson away from his friends, his loved ones, away from society because he placed his trust in another. They crucified Christ: the cross is done away with now but the steel doors of jail are just as heavy and just as hard to bear up the hill. The only voice you will hear in Johnson's defense is mine, and that voice is now still. 'Avoids Evidence.' In opening his final argument, Mr. Bell declared his opponent from Chicago, Mr Stansbury, had avoided talking about the evidence and had indulged in pure, unadulterated sophistry. He charged that in reading the report of Auditor R. W. Paulsen the defense counsel had given phrases meanings they do not bear. "What degree of trust." Mr. Stansbury asked in his closing argument for Johnson. "may a man place in another? The state would have you believe that if he does place trust in another and that other person uses some money the person who places the trust must pay for it. be taken out of the hearts of his loved ones." Throughout his address this morning. Mr. Stansbury referred to the fact that many statements in evidence in the case were made out by this trusted person. another employe of the Commercial bank. Doesn't Name Hanson-but. "Names of three men come into this lawsuit,' Mr. Stansbury said, "but I will mention the name of only one man to you and that man the defendant. "I would mention the names of the other two men but do you remember the part of the testimony by the bank receiver, Charles J. Smith, in which he referred to a meeting in the safety deposit vault of the Commercial bank some considerable time after it had closed? Mr. Smith referred to a woman as the widow of a man who comes inthis case. "Nothing shall come from my mouth and, God granting, nothing shall ever come from my heart about that man for he must be gone from this world or else he will not have a widow. Speak no evil of the dead. That isn't fair ball. I'll always refer to the defendant in this lawsuit by his true name, a good name, and I will refer to the other two men who come into this case as employes of the bank in my address to you gentlemen." Johnson Dries Tears. With this reference by the speaker to Walter A. Hanson, assistant cashier of the bank, who killed himself shortly after the bank closed, it was noted that the defendant was wiping tears from his face and a number of other individuals in

9. July 7, 1932 The Dispatch Moline, IL

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PLANS That Will Be First Distribution at Commercial; to Be Made by Aug. ATTORNEY FILES Total Claims Are Report of Auditor Shows. Upon filing claims of depositors and of the closed Commercial Savings bank of Moline in Rock Island circuit court this Harper, for bank receiver, said submit an application the court soon for 10 percent the claims against the bank which by that time have met approval of the court. Plans in motion today for the first distribution depositors and other creditors of the bank the last of this month and pected that distribution will amount 10 percent, was stated. Harper will the course of the next few days present to Judge Nels Larson circuit court request for the setting date for hearings contested claims that have been filed and the unfiled claims reported by the receiver. The Commercial bank closed last The first distribution to and other creditors has been delayed because of audit which necessary upon the discovery of irregularities accounts. Walter Hanson Moline, forcashier in charge of commercial at the bank, killed himself short time after the bank closed. Reynold M. Johnformer cashier of the bank, son, found guilty by circuit court recently charge of having withheld $23,000 school funds. He was treasurer the township including South Moline and outlying districts well being cashier of the bank. Indictments charging not been against DeWachter, forcashier in charge the bank, will trial Rock Island county on circuit court Monday on charge embezzlement and fraudulent conversion bank funds. In filing the claims in court day, Mr. Harper was acting Charles Smith, receiver for the bank. Claims Total $1,509,172. Mr. Smith's report shows an gregate liability of claims the bank. The total against filed general claims; of unfiled claims; of including officers and directors, signers co-signers of notes, stockholders, offsets, and unapproved claims; miscellaneous unpaid bills the bank. In of unfiled claims the report there are 2958 items, many of them savings accounts the Christmas the report filed bank, claims there are 3055 items, making total of claims. As soon the formal decree Judge Larson will, he has indicated, the claims which have been approved by the ceiver. that time hearings contested claims, preferred claims claims will schedand uled for some date in the near future. The will publish notice before the hearings are held. possibility that the There (Continued On Page

10. July 9, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 9, 1932

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COURT ORDERS CLAIMED Three Days for Presenting Accounts of Comercial ings Bank, Moline. Judge Nels Larson in the Rock Island county circuit court today three hearings claims against Commercial Savings bank of Moline, receivership. On July the court will preferred claims and claims estates and other representatives other than the person whose name the account appears books of bank. There seven preferred claims and dozen which estates assignees pear as claimants July the hearing will be claims. of which there claims of which there are several, and the motion of the to disallow all claims than There 1,442 filed claims most them less than many them only or three The ceiver sets petition that the him to been closed and that the bank neglected indicate its books the closed. The receiver asks the court distribution of dividends less than accounts, and to that the accounts referred to active be disallowed. Among undetermined claims heard on July 21, are those Edith Johnson and two of Reynold Johnformer cashier of the bank, in addition to the account Johnson treasurer the school township. The out his petition that he believes that Mrs. Johnson has substanpersonally the count in her name trix. and that the court should her interest and application to obligations the bank. The same situation lated in connection with Johnson's acounts as recited that Johnson treasurer has filed no claim, but claim for has been filed by the trustees the school township. for which Johnson was convicted recently, today sentenced serve 10 years in the penitentiary Books of the bank, the receiver formed the court, show but this balance did take into overdraft of one of the districts township. as Date. 22 has been fixed the the of which there some of those also referred receiver's to Judge Larson, Attorney Harper for the stated of all the several thousand against the dispute the amount the balance only with account, which claim been filed for sum $7,000 and the receiver places amount he believes actually less than half claim. The referred to only by expected that more than the days set by the court will dispose the claims. Disposition all but and preferred claims time, but likely that days may be needed the undetermined and evidence concerning signers notes that may claim offsets.

11. July 22, 1932 The Dispatch Moline, IL

Article from The Dispatch, July 22, 1932

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QUESTION CARE OF ESTATE BY R. M. JOHNSON Plan Inquiry on Handling of Funds Left by Wife's First Husband. BANK RECEIVER ASKS SUM Purpose of Withdrawals and Use of Money Probably Will Be Asked. An inquiry into the manner in which funds were in the estate of the late Dr. Carl O. Bernhardi of Rock Island and the guardianship of his daughter, Betty Bernhardi, also known as Betty Johnson, will be instituted as result of hearing before Judge Nels Larson Rock Island county branch circuit court today into the legal status of a deposit carried in the name of Mrs. Edith Johnson, widow of Dr. Bernhardi and wife of Reynold M. Johnson, former cashier of the closed Commercial Savings bank of Moline. The circuit court hearing was on the request the bank's receiver, Charles Smith, who is seeking to have applied on an indebtedness to the bank any Mrs. Johnson may have in the in her administratrix of the estate of Dr. Bernhardi. Attorney Fred H. Railsback, appearing for the Judge that he was told today by Johnson that the sums shown have withdrawn from the administratrix account were paid over to the guardianship. The attorney said that only searching inquiry into the records as to use made of the money and purposes of the could determine remaining balance the property of the ward whether part of it, as appears, payable to Mrs. and thus subject to offset against a of the bank. On June 1921, there was a deposit of $8093.34 to the credit of the administratrix following settlement of an interest Dr. Bernhardi had in property Clinton. The balance in the bank was then $8472.88 Numerous withdrawals, some large as $1500, have been made, and balance shown on the books as $1791.17, and interest. the withdrawals were not used for the minor Mr. Railsback said, she has proper claim for the balance, and in addition claim against the administratrix, her mother, for several thousand dollars more If the money was withdrawn without of the administratrix, as Mr. Railsback said was indicated by Johnson's explanation to him, inquiry by the state's attorney's office would be necessary, Judge Larson suggested. Mr. Railsback asked the consideration of the status of the account be continued pending an investigation of the records of Dr. Bernhardi's and the guardianship Betty Bernhardi, who has now reached her majority. It is planned to close the estate and the guardianship in Rock Island and Clinton and to if possible circumstances of the withdrawals of $6781.71 from account of Mrs. Johnson adminstratrix in the Commercial bank. Unless evidence is presented to show Judge Larson announced. the circuit court view of the claim the bank will be that third of the amount is due Mrs. Johnson and subject to application as an offset against indebtedness to the bank. Appeal Limit Tomorrow. Tomorrow is the final day for Reynold to complete arrangements for appeal from the Rock Island county circuit court in the case which he was convicted of withholding funds in his hands as treasurer of the school township which included the city districts of Moline and East Moline and the East Moline high school district. His attorneys have indicated that Johnson will not perfect the appeal, but will accept the sentence of imprisonment for one to ten years in Joliet penitentiary, imposed by Judge Larson on the jury verdict finding Johnson guilty of withholding of school funds. Johnson was allowed fifteen days to order preparation of the appeal record, and ninety days for the bill of exceptions. the record is not ordered by tomorrow the state's attorney's office intends ask for of the mittimus to delivery of Johnson to Joliet penitentiary.

12. July 22, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 22, 1932

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ABOUT FIGURES THAT DISAGREE State DeWachter Variance Balances; nies He Knew of Them. Jerome former assistant cashier the Commercial Savings bank Moline, trial in the Rock Island on county circuit court charges and of bank deposits April 1929, today centered on variations in items depositors' passbooks and bank ledger records, in DeWachter's hand writing. denied knowing that there differences in the balances. Asked where he obtained the interest ures entered on the passbook of Hilma Ekstrand, deposit volved in the indictment, the fendant said do not remember. The revealed that passbook showed interest of 1931, and ance of while the ledger showed and balance. 1929, there deposit $93 the passbook, not on the connection with the account Gus Jors, the was asked about balance of the passbook and on the ledger. Dan McNeal, assistant attorney, asked he did not "plug" the Jors count $10 when the account withdrawn, but objections the defense Thomas Sinnett and Ingelson, were tained to the question. Accounts Miss Mary Larson and Floyd Mitchell, involved in the indictment, were the subject of similar questioning the state. In closing his direct yesterday, testified that the duty Walter Hanson, assistant cashier who killed himself after the bank closed. to check sheets and the bank balances. He testified that he never checked the tally sheets with day book figures prepared. He said clearance items went through Hanson's cage. He said he never went the cash vault the bank. though had been told the combination figures several years ago by Reynold M. Johncashier. Charles Smith, receiver, defense witness, to testify cerning bundle of savings posit slips found after the bank closed. safety deposit the name brother of Hanson, and two not listed. expected the evidence the concluded and arguments made tomorrow before Judge Leonard E. Telleen. who hearing the case without jury.

13. July 26, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 26, 1932

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TELL OPPOSING Lawyers Claim Deposits; Clearly Guilty, Argues Prosecution. evidence in this dence that took argued for the defense the trial torney in the Rock Island circuit court today before county Judge Leonard Telleen. clear, Illinois case statutes are clear, and the only one of applying the question of this case to the law and facts this defendant guilty,' argued Dan McNeal, assistant state's who with State's Attorney torney. Bell has prosecuted the Ben DeWachter the charge against that began July 11 and to concluded today. Judge Telleen refrained from limiting arguments of the attorwhen the lawyers said the neys arguments would likely ended noon today, but noon found the arguments far from the judge indicated that he would require that the trial be finished today, even became necessary hold night session court. The judge is hearing the without jury. Thomas Sinnett make the concluding argument for the fense afternoon, and Bell will close for the Attorney state. opening argument for the prosecution, McNeal viewed the evidence which the state contends the guilt former assistant cashier the Commercial Savings bank Moline, on charges of on April 27, established. Eight bank deposits that date are involved in the and Mr. McNeal dwelt in detail the dence offered in the trial. the records of the bank show the facts, as this defendant has testified," argued Mr. McNeal, defendant himself sponsible because he prepared those same records." Mr. Ingelson charged in his ment that the state has relied upon only in building its case against deprived his liberty the on the insisted. He laid phasis on the fact that witheld were never found dreds found hidden in safety deposit boxes controlled by Walter Hanson, assistant cashier of bank, killed himself after bank closed last and Hanson's home and his bank Ingelson argued that Hanson and Reynold Johnson, cashier the bank, who yesterday began term Joliet penitentiary charge withholding school funds, taught DeWachter the only system bank and guided him in all his Rebuttal evidence the state included that by Alidor of Coal Valley and Floyd Mitchell Moline, testified that did not make deposits reflected in bank records and claimed by the state to have been "plugged." DeWachter again stand in his declared entered the $10 deposit the VanDaele account $100 the Mitchell account because him said Hanson gave him in connection with the VanDaele account.

14. September 22, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, September 22, 1932

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BANK RECEIVER SUES ON BONDS FOR SHORTAGES Claims $95,000 on Losses Through Embezzlement and Conversion by Three Officers. Charles J. Smith, receiver for the closed Commercial Savings bank of Moline, began suit yesterday in the Rock Island county circuit court against the National Surety company, in an effort to collect $59,000 on two fidelity bonds, claiming loss of $180,000 to the bank through wrongful acts of Reynold M. Johnson. Jerome J. DeWachter and the late Walter A. Hanson. Johnson, former cashier, is serving prison term on a charge of withholding school deposits, and was not tried on indictments charging embezzlement and conversion of bank funds. DeWachter, who was assistant cashier, was convicted of embezzlement and conversion of $809 and yesterday sentenced to one to 10 years in prison, and allowed time to appeal the case. Indictments returned against him charge conversion of a total of $37,339.37. Hanson. also an assistant cashier, killed himself after the bank closed. and in trials of Johnson and DeWachter it was sought to show that Hanson was responsible for mishandling of the bank's funds and also the school funds in Johnson's hands as treasurer of the school township. Two bonds are involved in the suit begun by the receiver, and the claim has been filed in a chancery action, instead of a law suit, the receiver setting out in his bill that it would be difficult or impossible to produce proper proof in a law case, but that the claim can be established in a court of equity. One of the indemnity bonds cannot be produced, the receiver says, and he asks the court to compel the defendant to replace it. A copy of the bond form in use at the time the bond was originally issued is included in the bill. It is claimed that the company on March 3, 1922, executed bond to indemnify the bank against embezzlement, conversion or misappropriation by employes and that the bond specifically covered actions of Johnson to the extent of $15,000. DeWachter to $10,000 and Hanson to $10,000. It is charged that between the date the bond was issued and the date the bank closed, Sept. 23, 1931, the bank sustained pecuniary loss through wrongful acts or omissions of each of the three former officers, specifying the sum of $75,000 as the amount of the loss in the case of each. Under the bond it claims $15,000 because of Johnson's acts, and $10,000 each because of acts of DeWachter and Hansou. "Under a "banker's blanket bond' executed, according to the receiver's bill, May 17, 1929. the bank was protected to the extent of $50,000, and it is claimed it suffered loss of $100,000. It is claimed in the bill that the fact of its losses was not learned till Oct 24, 1931. and that the defendant was notified for the bank of the loss, and granted to Feb. 20, 1932, to file its full claim, and that the claim was filed Feb. 16, 1932. It is asked in the bill that the surety company replace the lost bond, that an accounting be made of losses sustained by the bank. and that the jcompany be ordered to pay such sums as will compensate the bank for its losses up to the amount of each of the two bonds. J. F. Harper and S. R. Kenworthy filed the bill as attorneys for the receiver.

15. November 14, 1932 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, November 14, 1932

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Auditor Instructs Receivers That Applications Are Be Made for Advances. Four closed banks of Rock Island county will among the 203 closbanks of Illinois receivwill make application for loans from the federal nance Uncollected sets of these banks represent roughly face value. Of these portion likely be that would not be acceptable for pledges to the ReconstrucThe two largest banks in this county that are closed are the Commercial Savings bank, Moline, which has million dollars, round figures. of uncollected assets, face and the State bank of East Moline, which has something less than unliquidated assets at face value. The depositors of the Commercial bank have received 10 per cent dividend. amounting to about $150.The depositors of the Manufacturers bank have received dividends to 19 per cent the of claims of depositors and $170,000 bills payable. The bank had assets of face value. when closed. Charles Smith, receiver for the Commerbank, and Oscar Ohlweiler, ceiver for the Manufacturers bank, said they had not determined what portion of remaining uncollectassets might be used basis for an application for loan. Cole, receiver for the Fifth Avenue Savings Bank and Trust company, Moline, estimates that uncollected assets of that bank, face value, amount to about $425,000. Depositors bank have had one 10 per cent dividend and another will be paid soon. The first amounted to in round figures. Harry E. Thompson, receiver for the Farmers State bank of Reynolds, has made 20 cent distribution. That bank had assets rated and the receiver's collections have been about $80,000. The assets are partly second mortgages, chattel mortgages and unsecured notes, and only survey would determine what portion might be useful as security for corporation loan. Associated Press dispatches from Springfield today said that Oscar Nelson, auditor of public accounts. the receivers banks to apply for loans. The instructions were issued of the amendment giving bank the power to pledge for loans. The money borassets rowed corporation would used to pay depositors. The amendment giving the quired authority receivers pected to be made effective within days proclamation from Governor Louis Emmerson. has been made regarding the type of securities ceptable by the corporation for loans. Nelson said everything possible would done the money distributed to depositors quickly as possible.

16. October 10, 1933 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, October 10, 1933

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BANK IN MOLINE HOPING NOW TO ISSUE DIVIDEND Another Payment of Per Cent to Depositors May Be Made Prior to Jan. 1. Depositors of the Commercial Savings bank of Moline may receive dividend checks of per cent before Jan. 1934, according to Charles J. Smith, receiver. If economic conditions improve, so that portion of the bank's assets, large majority of which are in real estate mortgages, can be liquidated, more substantial dividend will be declared, Mr. Smith said. The Commercial bank closed Sept. 23, 1931. Mr. Smith was appointed receiver on Oct. 17, 1931. Since the institution closed, the bank has paid two dividends, totalling 14 per cent. The first dividend of 10 per cent was paid Aug. 16, 1932 and the second of per cent was paid on Dec. 20, 1932. The final statement issued on June 30, 1931, about three months before the bank closed, showed total of $1,601,937.93 on deposit. The institution had 4,000 depositors when the doors were closed. The bank receiver has collected $328,177.45 since the institution closed about two years ago. The total disbursements amount to leaving a balance on hand of The salary of the receiver during the time that the bank has been in the process of liquidation, amounts to $5,475. The receiver's expense was $170.90. Attorney's fees during this period totaled and the legal expense amounted to $983.50. Stockholder Assessment. The report shows that has been collected from stockholders, but no payment out of this money has been made to the depositors. L. Oakleaf, attorney in charge of stockholders' liability payments, said this money cannot be paid to depositors until court order has been issued, and he added that there are still several legal technicalities to be settled before the court will issue the necessary order. The total stockholders' 11ability is $100,000. Under disbursements, the report indicates that a total of $15,348.40 has been spent for administrative miscellaneous expense since the bank closed. According to Mr. Smith, $11,561.17 of this amount represents taxes, special assessments and insurance premiums paid on property acquired by deed or foreclosure. Under the non-administrative miscellaneous which amounts to $13,820.21, Mr. Smith says is included money needed for payment of auditing each account in the bank. The audit in many accounts goes back ten or fifteen years. Funds Collected. Mr. Smith stated that all money by the receiver has been paid from funds collected by Mr. Smith, as no cash was in the bank the day it closed. "On account of the depression and economic conditions, the receipts from interest in no way reflects the accrued interest due that will eventually paid for the benefit of the depositors," according to the receiver. The report also shows that disbursements on account bills payable, which represents money borrowed by the bank before it closed, and the settlement with the state treasurer, have both been paid by Mr. Smith during the receivership. Mr. Smith said that the amount of money represented by the item additional assets discovered by the receiver far exceeds the total funds used to pay his salary and expense. The National Surety company, which had furnished bonds for officers of the bank, is in the hands of receiver and no payments have been made by this company, said F. Harper, attorney for the receiver. Robert Cole, receiver for the Fifth Avenue bank, Moline, announced recently that depositors of the institotion may also receive dividend of per cent by Jan. 1934. Fred Railsback the attorney for the receiver at the bank.

17. July 16, 1934 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 16, 1934

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DECREE ORDERS JUDGMENT FOR RECEIVER Finding Against 69 Defendants in Commercial Savings Involves Total $51,481. Judge Paul Califf the Rock Island county circuit court today entered decree for judgment against 69 former Savings bank Moline, for aggregate The was based on finding of James 133report the stockholders' liability the closed bank objections were entered to the Murphy made separate concerning liability 168 fendants the 193 periods of stock ownership during the career of the bank until closed in September, 1931. There defendants court, because of their death their in the state. Since the stockholders' liability December, 1931, by Harold Stegmiller and Winkler and others. the Charles Smith has lected No distribution been made to creditor depositors, because objections made during the pendency time, Smith proposed make ment from the last argued that the could not be made until final bility Out of has and other nection the and he hand for distribution Oakleaf Churchill. attorneys the receiver collect stockholders' liability, submit the court the next week petition authorizing distribution on the liability Among the judgments against against Reynold Johnwho was cashier, and is serving penitentiary term conviction school funds Stock bank and collections have amounted to an unusually large percentage.

18. July 20, 1934 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 20, 1934

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ASKS COURT TO DECIDE PLAN IN BANK DIVIDEND Receiver Seeks Authority to Pay Commercial Savings Creditors Sum of Petition was filed in the Rock land county circuit court this morning asking for order for distribution and such amounts as realized the meantime. from stockholders bility for the Commercial Savings bank of Moline The matter will come up June 30 for consideration Judge Leonard Telleen. through Oakleaf Churchill, forms the court in his petition that he filed previous petition which objections were made, and the distribution was delayed. Since then, judgments for have been obtained. on findings of James expected some collections will made shortly on these judgments. Mr. Smith says that he uncertain to the manner of distribution of collections, and not certain whether they should be distributed to all creditors. or on the basis of the liability for the 193 periods of stock the history of the bank He asks for instruction and direction of the court on this question. In the arguments, when distriwas proposed last fall, stockholders insisted that the bility must be determined by riods, and distribution made the same basis. Such plan would volve elaborate and expensive audit. and seriously reduce the sum available for creditors. The stockholders have little legal interin the situation as distribution. and not considered likethat there be objections on the part creditors the distribution to all creditors on percentage Judge Telleen. however, be called upon to make determination of the method. Claim Reopened. Numerous matters relative 'to the receiverships of the Peoples Savings Bank Trust company, line. and the Moline State Trust & Savings bank were brought before Judge Telleen today. The State

19. July 25, 1934 The Daily Times Davenport, IA

Article from The Daily Times, July 25, 1934

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STEPHENSON HEAD OF JUNIOR COMMERCE Wilbert A. Stephenson is the president Moline Junior Association Commerce, his election at monthly dinner meetlast night being unopposed. Mr Stephenson, who lives 2419 Twelfth avenue, was elected for six-months term and succeeds John Martin. The meeting was held in the John Athletic in East Moline. Other officers were electas follows: Executive vice Vice president in charge of comKenneth Rosenberg Vice in charge of proMilford Nelson Donkey Baseball Game Kenneth Rosenberg was named general chairman the baseball game which Moline Junior Association Commerce will promote the purpose of raising funds for the Moline municipal life saving corps The game, which is to be played donkeys, will staged August 12. Arrangements being made to teams from meet in games. Frank named chairticket sales game and Peterson was selected as grounds chairman. Moline deputy receiver has already exchanged over $800,000 worth of these mortgages in liquidation substantial amount remains to be exchanged completed which will permit of futher substantial loan from and permit that much more being available under free positors bank East Moline Bank The Manufacturers State Bank East Moline closed by der state auditor of public During the period liquidation, total ceipts which itemized in the accompanying statement receipts and these ceipts, the has paid preferred claim holders, paid shortly the closing of the this, the has been paid ceiver's legal expense, for attorney's for clerk and hire. the bank closed had bills the has since that time off full, Total the $147. have been paid date and there remains the the receiver sum which available for future diviIn the case of the stockholder's bank, been which been depositors and remains hands Truman Schafer receiver the Fifth Avenue Bank The Fifth Avenue Trust Savings Bank which cently taken over William as receiver from Robert former receiver. resigned closed 23, 1931 and the present time show liquidathe sum $166. Out of has been paid to preferred claim holders in the the banks, was paid shortafter the closing the bank addition this, the sum been ceiver's salary, expense, for attorney's fees for clerk and stenographer At the bank closed, the sum $36. payable bills payable, been paid full during the period of liquiCommon dividends the sum have paid date and has been lected from the former this bank, Robert maining Cole, in the suit as of June 30, liability 1934. Commercial Bank This report made of the Commercial Savthe bank having ings for since the quarterly report made the various banks Mr O'Donnell's charge. Their statement ceipts and disbursements during of the the bank closed on Sept. 23, 1931 in the accompanying state During the period of liquidation, most of which has derived from the sale bonds other securities from which has been the this paid back form and paid on the bills due unpaid time the closing the has clerk stenographer fees and attorney's receiver's salary, pense legal the of the stockholder's In case